Toyota Motor North America, Inc. (TMNA), Toyota Motor Manufacturing Canada Inc. (TMMC), and Toyota Canada Inc. (TCI)
Climate Impact & Sustainability Data (2020-04 to 2021-03, 2022-04 to 2023-03, 2023-04 to 2024-03)
Reporting Period: 2020-04 to 2021-03
Environmental Metrics
ESG Focus Areas
- Carbon
- Water
- Materials
- Biodiversity
- Outreach
Environmental Achievements
- Reduced total Scope 1 and 2 GHG emissions by 22 percent over the last five years.
- Installed solar arrays at three plants generating 6,480,000 kWh of renewable energy annually.
- Recycled 93.2 percent of all waste in 2020.
- Reduced total waste generated by 13 percent over the last five years.
- Indiana plant saving 54 million gallons of fresh water per year by reusing wastewater.
Social Achievements
- Launched the Dealership Environmental Excellence Program (DEEP) to incentivize sustainable practices at dealerships.
- Cars for Good program supporting local charities with free short-term vehicle loans.
- Supported STEM programming through Huron River Watershed Council's Streamside Education Program.
Governance Achievements
- Updated Green Supplier Requirements in 2021 to include annual CO2 reduction targets for suppliers.
- Established a comprehensive NiMH and Li-ion battery recycling program.
- Zero significant environmental regulatory violations in fiscal year 2021 at North American manufacturing plants and logistics sites.
Climate Goals & Targets
- Achieve carbon neutrality by 2050.
- Achieve 70% electrified vehicle sales in the U.S. by 2030.
- Make all manufacturing plants carbon neutral by 2035.
- Reduce water use by 3% per unit of vehicle production by 2026.
- Reduce procurement of plastic packaging materials by 25% by 2026.
Environmental Challenges
- Climate change impacts (fires, flooding, storms, drought).
- Water scarcity in some North American locations.
- Need to reduce reliance on plastics and improve packaging sustainability.
- Biodiversity loss and habitat degradation.
Mitigation Strategies
- Developing water stewardship plans for high-risk sites.
- Investing in renewable energy projects (solar, wind).
- Setting targets to reduce water use and plastic packaging.
- Planting pollinator gardens and participating in habitat restoration projects.
- Working with suppliers to reduce CO2 emissions and improve chemical management.
Supply Chain Management
Supplier Audits: Annual chemical management supplier questionnaire; updated Green Supplier Requirements.
Responsible Procurement
- Green Supplier Requirements; supplier CO2 reduction targets; pilot software platform for data reporting.
Climate-Related Risks & Opportunities
Physical Risks
- Extreme weather events
Transition Risks
- Regulatory changes; market shifts
Opportunities
- Development of energy-efficient products and alternative fuels.
Reporting Standards
Frameworks Used: GRI
Certifications: ISO 14001
Third-party Assurance: Not disclosed
UN Sustainable Development Goals
- 7, 11, 13, 6, 12, 15, 17
Toyota's initiatives contribute to these goals through various programs related to energy, cities, climate action, clean water, responsible production, life on land, and partnerships.
Sustainable Products & Innovation
- Electrified vehicles; vehicles using bio-based plastics; magnets with reduced rare earth metals.
Awards & Recognition
- WHC’s Invasive Species Project Award (2020)
Reporting Period: 2022-04 to 2023-03
Environmental Metrics
ESG Focus Areas
- Carbon
- Water
- Materials
- Biodiversity
Environmental Achievements
- Reduced absolute greenhouse gas emissions from operations by nearly 12% since 2019.
- Reduced the weight of single-use plastic packaging procured by 15% between FY2018 and FY2023.
- Recycled, reused, or repurposed 93% of all waste in 2022.
- Developed 10,337.9 acres of pollinator habitat in collaboration with partners.
Social Achievements
- Launched the Dealer Environmental Excellence Program (D.E.E.P.) with 50 participating dealerships, reducing their fossil-fuel based electricity use by 16%.
Governance Achievements
- Implemented robust reporting and compliance processes to address past emissions defect information reporting gaps.
Climate Goals & Targets
- Achieve carbon neutrality across the vehicle life cycle by 2050.
- Increase electrified new Toyota vehicle sales to 70% in the U.S. by 2030.
- Achieve carbon neutrality at all North American facilities by 2035.
- Increase purchased renewable electricity to 45% or more by FY2026.
- Reduce absolute GHG emissions from logistics by 15% from FY2018 levels by FY2026.
- Reduce absolute CO2 emissions from suppliers by 14% from FY2018 levels by FY2026.
- Expand participation in D.E.E.P. to 100 dealerships by FY2026.
- Reduce single-use plastics at on-site food services by 75% by FY2026.
- Reduce procurement of single-use packaging materials by 25% by FY2026.
- Implement a closed-loop battery recycling program by FY2026.
Environmental Challenges
- Meeting GHG emission reduction targets for logistics due to low availability of fuel cell and electric powertrains for trucking fleets.
- Meeting water reduction targets due to increased water use per vehicle in FY2023 compared to the baseline.
- Meeting single-use plastics reduction target at on-site food services due to COVID-related delays.
Mitigation Strategies
- Converting shunt trucks from diesel to EV (18 converted, 279 planned).
- Continuing to seek opportunities for continuous improvement in water efficiency.
- Planning to replace single-use items with compostable and reusable items in FY2024.
Supply Chain Management
Supplier Audits: Annual chemical management supplier self-assessment survey
Responsible Procurement
- Green Supplier Requirements (including CO2 emission reduction targets and water usage tracking).
Climate-Related Risks & Opportunities
Physical Risks
- Severe weather
Transition Risks
- Regulatory changes
- Market shifts
Opportunities
- Development of energy-efficient products
Reporting Standards
Frameworks Used: GRI Sustainability Reporting Standards
Certifications: ISO 14001 (multiple facilities), LEED (multiple facilities)
Third-party Assurance: Not disclosed
UN Sustainable Development Goals
- Goal 6
- Goal 7
- Goal 12
- Goal 13
- Goal 15
Initiatives align with these goals through carbon neutrality efforts, water conservation, sustainable materials use, biodiversity protection, and responsible production.
Sustainable Products & Innovation
- Electrified vehicles
- Vehicles with bio-based plastics
Awards & Recognition
- Not disclosed
Reporting Period: 2023-04 to 2024-03
Environmental Metrics
ESG Focus Areas
- Carbon
- Water
- Circular Economy
- Biodiversity
Environmental Achievements
- 14% reduction in Scope 1 & 2 greenhouse gas emissions vs. FY2019
- 93% of all waste was recycled, reused or repurposed in CY2023
- 22% reduction in single-use packaging vs. FY2018
- 6.8% reduction in water withdrawal per vehicle vs. FY2021
Social Achievements
- 74 dealerships participating in Dealership Environmental Excellence Program (D.E.E.P.), reducing non-renewable electricity use by 20%
- 14,432.4 acres of pollinator habitat developed since FY2022
Governance Achievements
- Updated Green Supplier Requirements requiring suppliers to set and meet an annual absolute CO2 reduction target of at least 3%
Climate Goals & Targets
- Achieve carbon neutrality at all North American facilities by 2035
- Achieve carbon neutrality across the vehicle life cycle by 2050
- Increase electrified new Toyota vehicle sales to 70% in the U.S. by 2030
- Reduce absolute GHG emissions from logistics by 15% from FY2018 levels by FY2026 (not expected to be met)
- Support the development of at least 26,000 acres of pollinator habitat by FY2026
- Increase purchased renewable electricity to 45% or more by FY2026
- Achieve 40% electrified new Toyota vehicle sales in the U.S. by 2025
- Expand participation in D.E.E.P. to 100 dealerships by FY2026
- Reduce water use per unit of vehicle production by 11% by FY2026
Environmental Challenges
- Low forecasted availability of fuel cell and electric powertrains for trucking fleets, hindering logistics emissions reduction target.
- Difficulty in capturing data for all types of packaging used to ship parts and accessories.
- Need for more data gathering to comply with new regulations (e.g., ELV directive in Europe).
Mitigation Strategies
- Developing a strategy combining gradual conversion to hydrogen fuel cell and electric powertrains with other GHG reduction opportunities for logistics.
- Focusing on the largest source of packaging waste: single-use packaging.
- Implementing systems to manage data and ensure high quality for decision-making, requiring company-wide cooperation.
Supply Chain Management
Supplier Audits: Over 75% of suppliers by spend provided CO2 data in FY2024
Responsible Procurement
- Green Supplier Guidelines requiring at least 3% annual absolute CO2 emissions reduction
- Tracking water withdrawal, discharge, and consumption volumes from suppliers
- Requesting suppliers to develop water reduction plans and targets
- Collaboration with suppliers on sustainable materials and waste reduction
Climate-Related Risks & Opportunities
Physical Risks
- Severe weather
Transition Risks
- Regulatory changes
- Market shifts
Opportunities
- Development of energy-efficient products
- Renewable gasoline blend
Reporting Standards
Frameworks Used: GRI Sustainability Reporting Standards
Certifications: ISO 14001
Third-party Assurance: Toyota Sustainability Data Book; TMNA and TCI do not have North American data separately assured.
UN Sustainable Development Goals
- SDG 7
- SDG 13
- SDG 6
- SDG 12
- SDG 15
Toyota's activities supporting Challenge 2050 and the SDGs are organized around the environmental sustainability focus areas of Carbon, Water, Circular Economy, and Biodiversity.
Sustainable Products & Innovation
- Electrified vehicles
- Vehicles using bio-based plastics and recycled materials
Awards & Recognition
- Six of the 12 vehicles on ACEEE's Greenest List